According to Section 338 of the U.S. tax code, a purchaser of 80% or more of the assets of the target may elect to treat the acquisition as if it were an acquisition of the target's assets for tax purposes.

Question

Quizplus · Accepted Answer

Section 338 of the U.S. tax code allows a purchaser of 80% or more of the stock of a corporation to elect to treat the acquisition as an asset purchase for tax purposes, not the purchase of assets directly.